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India: BF-rebar trade prices drop INR 800/t ($9/t) on lacklusture demand

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BigMint Bureau

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13 Dec 2024, 17:31 IST

India: BF-rebar trade prices drop INR 800/t ($9/t) on lacklusture demand

Dull demand weighs on sentiments

IF rebar prices fall across markets

Trade-level blast furnace (BF) rebar prices dropped on a weekly basis amid lacklusture demand. Market sentiments were subdued, impacted by liquidity crunch. Some of the mills have reduced their list prices considering the market scenario, sources informed. Trade-level blast furnace (BF) rebar prices fell w-o-w by INR 800/t ($9/t) to INR 53,000/t ($625/t) exy-Mumbai, as per BigMint's assessment on 13 December 2024. Prices are exclusive of GST at 18%.

In the project segment, prices fell w-o-w to around INR 51,000-52,000/t ($601-613/t) FOR Mumbai. Prices dropped w-o-w amid limited buying inquiries.

In beginning of December, a leading private steel mill's caster witnessed downtime, resulting in a reduction of rebar production of around 35,000-45,000 t. This disruption has consequently affected supply in the market, BigMint heard from market sources.

Update on projects

The Ministry of Road Transport and Highways (MoRTH) constructed 841 km of National Highways (NH) in November 2024.

G R Infraprojects Limited received Letter of Intent (LOI) for the project Transmission Scheme for integration of Bijapur REZ in Karnataka. Transmission cost of project is around INR 1,077 million per annum and period of construction would be 24 months.

Factors affecting market dynamics

1. IF rebar prices decline w-o-w: IF rebar trade prices declined w-o-w across markets amid moderate domestic demand. Manufacturers reduced their list prices and offered discounts to liquidate material. In addition, liquidity crunch prevailed in the market which weighed on sentiments. Inventory idling time remained high at 12-15 days across markets. Meanwhile, IF rebar trade prices remained unchanged w-o-w at INR 46,700/t ($551/t) exw-Mumbai.

The price gap between BF-IF rebars stood at around INR 6,500-7,000/t ($77-83/t) in Mumbai. Notably, IF rebars enjoy a 65-70% share of the market.

2. Raw material prices rangebound w-o-w: BigMint's weekly Odisha iron ore fines Fe62% prices remained stable w-o-w at INR 5,250/t ($62/t) ex-mines on 7 December. Iron ore prices in Odisha remained stable this week, with limited buying interest due to weak market sentiment and subdued demand. A shortage of material also contributed to reduced activity, as major miners refrained from offering new supplies, further dampening market participation.